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Montgomery Street Income Securities, Inc. Announces Distribution

SAN FRANCISCO --(Business Wire)--

Montgomery Street Income Securities, Inc. (NYSE: MTS (News - Alert)) (the "Fund")
declared a dividend of $0.29 per share. The dividend includes positive
tax adjustments of approximately $0.08 per share. The transactions that
contributed to approximately $0.06 per share of these tax adjustments
will result in offsetting tax adjustments that will reduce future
dividends by a similar aggregate amount. The dividend is payable on
December 31, 2012 to stockholders of record at the close of business on
December 24, 2012.

It is anticipated that substantially all of the distributions paid in
2012 will be distributions from ordinary income for tax purposes. The
actual sources of distributions will be reported to stockholders in
January 2013 on Form 1099-DIV.

The Fund is a closed-end diversified management investment company whose
primary investment objective is to sek as high a level of current
income as is consistent with prudent investment risks, from a
diversified portfolio primarily of debt securities. The Fund's shares
are traded on the New York Stock Exchange under the symbol MTS.

Closed-end funds, unlike open-end funds, are not continuously offered.
There is generally a one-time public offering and, once issued, shares
of closed-end funds are sold in the open market through a stock
exchange. Shares of closed-end funds frequently trade at a discount to
net asset value.

The price of the Fund's shares is determined by a number of factors,
several of which are beyond the control of the Fund. Therefore, the Fund
cannot predict whether its shares will trade at, below or above net
asset value.

Investments in funds involve risk. Yields and market values will
fluctuate. Investing in foreign markets presents certain unique risks
not associated with domestic investments, such as currency fluctuations,
political and economic changes and market risks. Additionally, the Fund
invests in lower-quality and non-rated securities, which present greater
risks of loss of principal and interest than higher-quality securities.
All of these factors may result in greater share price volatility.

This announcement is not an offer to purchase or the solicitation of an
offer to sell shares of the Fund, a prospectus, a circular or
representation intended for use in the purchase or sale of Fund shares,
or a proxy solicitation.